For a small or medium-sized business, gaining a large client thatconsistently makes orders and pays on time would seem like an obviousblessing. Being able to rely on a steady flow of work is reassuring, butthere are also major downsides if one or two clients make up themajority of your revenue.
The most obvious problem is that if the one organisation you rely ongoes under, you may well be too. This doesn’t just apply to the privatesector, government cuts or reorganisation could mean being exposed torisk when dealing with public bodies. Even if a client is doing well,they might make the decision to switch providers when your contract isup for renewal. Client dependency can seem like a potential disaster,which has effects beyond your control. But there are steps you can taketo mitigate the risks.
Evaluate
When forming a business strategy to move away from a position of clientdependency, it pays to start with looking at exactly which clients youare most dependent on, and to what degree. Having a percentage figurefor each one against your total monthly revenue is a good way toevaluate this. Seriously consider the impact of losing your biggestcustomer; would your company survive the loss?
Aside from client dependency, you may also be exposed to risk fromconcentrating on one market sector. Industry-specific downturns arecommon, and multiple clients could be affected.
Diversify
When investing money, you wouldn’t put all your eggs in one basket. Sowhy take that attitude in regards to revenue? Looking at your corebusiness, what about your infrastructure and working practices couldappeal to a wide range of clients? From this basis, you can then adaptworkflows and business processes to meet new customer requirements.
Having a sales strategy and process that emphasises your past successeswhile showcasing business flexibility is critical. Potential clientswill want to be assured that your services aren’t only relevant in oneindustry and that you can adapt alongside them.
Retain
Maintaining good customer relations and having effective means ofcommunication are vital to retaining custom. Achieving these goalsdoesn’t have to lead to higher overheads. Having a system open tocustomers where they can log suggestions and complaints, and dealt withby priority is a more cost-effective and efficient system then handlingeverything manually.
A clear line of communication leads to more efficiently providedservices, fewer headaches and a clear picture of what a customer wantsin the future.
SwiftCase is a cloud-based business process management platform thatincludes many features to help diversify your client base and mitigaterisk.
- Generate charts and graphs to evaluate to what degree you depend on aclient’s revenue
- Configurable workflows to adapt to new clients and markets
- Client portal to maintain excellent customer relations and retainbusiness
Get in touch with us today, for a free, no-obligation demonstration.
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